|
Author: Gary Simpson Article source: http://www.selfgrowth.com/. Used with author's permission.
Albert Einstein, one of the most intelligent people who ever lived, called it the eighth wonder of the world. What he was talking about was the effect of compounding. Compound interest to be precise.
Those in society who are materially rich know how to compound their assets so they forever grow in value.
While most people commence purchasing consumable "feel-good" items like flashy motor vehicles, large televisions and yearly holidays overseas, the rich-minded folk commence accumulating assets that compound in value. As the years pass by, the gulf between the two becomes exponentially wider.
For example, at an early age people with a rich mentality will acquire well-located real estate and quality shares. Those with poor mentality recklessly spend their money on depreciating items that are worth less and less as the years go by.
By way of explanation, in the examples above what do you think the value would be after say, two, five or ten years of a flashy motor vehicle, that large television or any of the holidays? In many instances the people buying these things go into debt to fund them in the first place, so they are making large interest payments on consumables that depreciate immediately from the moment they are bought.
Eventually, the rich-minded folk reach a point of "critical mass" in their wealth creation whereby their assets are appreciating so rapidly that they no longer have to work. Their assets keep building wealth on a daily basis. The poor-minded folk, on the other hand, always have to work because they continually need to fund their worthless extravagances.
Here is an example of rich mentality versus poor mentality. Let's say you found one of those fabled genie bottles. You give it a rub and to your astonishment out pops the genie. Now he doesn't offer you three wishes as the legend goes. He has only one offer for you and it is a choice. Here is the choice:
First choice - you can have $1 million no questions asked. Agree now and it is yours - immediately.
Second choice - you can have 1 cent today doubled every day for a full 31 day month. That is, 1 cent increases to 2 cents which increases to 4 cents and so on for the full month. At the end of the month you get to keep the final figure.
"Make your choice now!" commands the genie.
It hardly seems like a sensible choice at all, does it? Well, do the math yourself. Work it out. Would you have made the superior choice?
The rich get richer because of the choices they make, the knowledge they seek and the resistance they have to immediate gratification. That is why they just keep on getting richer. You can too. The secret is education and discipline. You can learn much more about these principles at my website.
This article comes with reprint rights providing no changes are made and the resource box below accompanies it. About the author: Gary Simpson is the author of eight books covering a diverse range of subjects such as self esteem, affirmations, self defense, finance and much more. His articles appear all over the web. Gary's email address is budo@iinet.net.au. Click here to go to his
Motivation & Self Esteem for Success website where you can receive his "Zenspirational Thoughts" plus an immediate FREE copy of his highly acclaimed, life-changing e-book "The Power of Choice." To learn more about wealth creation principles you can click here.
How to Maximize Your Distance by Hitting Triples Instead of Home Runs
This lesson is entitled, "How to Maximize your Distance by Hitting Triples instead of Home Runs" and it's a great overall theory to build your entire swing arou...
How to Make a Fortune from Unique Resistance-free Advertising
The trouble with trying to sell anything to anybody... especially with ads and sales letters... is buyer resistance. So how do you completely eliminate the resi...
Link Exchange
A Link exchange is a great way to market your website in a very cost effective manner! You want to generate more hits to your website but need a good source? ...
5 Tips For Increased Website Traffic
There are still a few good ways to help build your web traffic and still pay nothing.
Elements of Graphic Design for Your Website
We've all seen them. Poorly designed web sites that make you cringe as soon as they load. But how do you keep your website from becoming, well, ugh. You could h...
What are You Doing to Improve Your Golf Swing?
Improve your golf swing. You have probably tried everything, from following advice that worked for your friends to so called 'tips from experts.' So what else ...
Financially Stable Kids – Prepared for College
We are all familiar with the stories that most students have when they finally get through those last days of college. Their financial states are in ruins, wit...
Leadership Defined
All too often, CEO's have been looking out for No. 1 at great expense to shareholders and the country. The time has come for us to examine what type of people ...
Know What You Are Selling As If You Were Buying It
Have you ever walked into a store that sells a particular item be it tires or lawn mowers and you are greeted by some person who acts like they know everything ...
Piano Lessons Can be Fun!
Illustrates the difference between note reading and a chord-based approach to piano lessons.
Breed Profile - The Labrador Retriever
A profile of one of the world's most popular dogs - origins, personality, trainability and physical characteristics.
Harness the Power of the Internet
As part of your overall strategy, your website is a powerful tool to increase your visibility. Your prospects can immediately access information about your orga...
A Basic Introduction to Blogging
Web logging first appeared on the net in the mid-1990s. The term "web log" was initially coined refer to a server's log file and then expanded to include the me...
How Effective Customer Surveys Will Help Innovate Your Business
Learn what makes your customers tick and what ticks them off. Effective customer surveys are the key to innovating your business and giving your target marketi...
Coaching Generation X
One of the most fundamental requirements for effective coaching is the ability to understand others' motives, values, and goals, not enforcing one's own on othe...
The Cool Down - Recover Faster & Avoid Injury!
The correct cool down procedures will help you to recover faster and avoid injury. Keep reading to see real life examples of professional cool down routines.
The Best Gift to Give Yourself and Others
I'm often asked the question, "How can I best help my children, spouse, family member, staff member, friend etc. improve/change?" In fact that might be the most...
Forget Positive Thinking
There are always explanations for why things to you or others. Even though you might not understand why. Some of the time, when things happen that you do not wi...
First Component of Weight Loss
The inside-out approach to a body transformation.
Temporary Internet Files - the Good, the Bad, and the Ugly
A little bit of time invested into learning about internet security can go a long way in preventing mishaps on your computer. Temporary internet files are not s...
Campaign Strategy for Paid Placement
A Paid Marketing campaigns provides immediate search engines rankings for your most important keywords. It doesn't determine weather it is a dynamic, static or ...
10 Common Money And Success Myths – Part 3
Millionaires are made every day. Many of them are self-made millionaires - people who started with nothing or close to nothing and amassed fortunes. Simply beca...
Aquarius: Diaphanous Goddess Of The Sapphire Fae
It is up to her lover to whisper her out of her troubles, and she will often need lengthy sessions before allowing herself to be free and sensual. Scent the bed...
Aromatherapy : A Scent Away for Great Relationships
Is it possible that a scent can make you more mellow and increase dramatically the relation with you and your mate? Can you calm the kids down instantly? Do y...
|
Print this page